Drake Pacific Enterprises Ltd.

Drake Pacific Enterprises Ltd.

April 15, 2009 19:58 ET

Drake Pacific Increases Reserves

CALGARY, ALBERTA--(Marketwire - April 15, 2009) - Drake Pacific Enterprises Ltd. (TSX VENTURE:DPE) -

Reserves Increase:

Drake Pacific Enterprises Ltd. ("DPE" or "the Company") announces its year end reserve evaluation and subsequent March 31, 2009 update, prepared by Sproule Associates, Martin & Brusset Associates, and AJM Petroleum Consultants. At March 31, 2009 proved plus probable reserves for the company were evaluated at $16.5 million (NPV 10%). The previous year end reserves for Dec 31, 2007 were valued at $6.2 million, an increase of 155%. Total proved plus probable reserves increased 171% from 311 Mboe to 843 Mboe.

Operations Update:

Current production is 300 Boed, primarily due to the successful reactivation of the Sousa production. Production is expected to reach 350 Boed when the downspacing application is approved to allow simultaneous production from the 13-12 and the new 11-12 well at Sousa. The new 11-12 well at Sousa is expected to qualify for the new 5% royalty rate. These evaluations include our recently re-activated production at Sousa.

"Despite recent energy prices and the new government royalty program, the team at DPE have managed to significantly increase shareholder value and this is well reflected in our new reserve evaluations and production levels. We believe the current "uncertain times" hold many opportunities and we are well placed to take advantage of them." said Drake president, Mr. Roger Penner.

Drake Pacific Enterprises Ltd. is active in oil and gas exploration and development throughout Alberta and Saskatchewan. Headquartered in Calgary, Alberta, Canada, the Company is publicly traded on the Toronto Stock Exchange Venture Board under the stock symbol DPE.V.

This news release contains forward-looking information, Implicit in this information are assumptions regarding commodity pricing, production , royalties and expenses that, although considered reasonable by the Company at the time of preparation, may prove to be incorrect. These forward-looking statements are based on certain assumptions that involve a number of risks and uncertainties and are not guarantees of future performance. Actual results could differ materially as a result of changes in the Company's plans, commodity prices, equipment availability, general economic, market, regulatory and business conditions as well as production, development and operating performance and other risks associated with oil and gas operations. There is no guarantee made the Company that the actual results achieved will be the same as those forecasted herein. Barrel of oil equivalent ("boe") amounts may be misleading, particularly if used in isolation. A boe conversion ratio has been calculated using a conversion rate of six thousand cubic feet of natural gas to one barrel and is based on an energy equivalent conversion method application at the burner tip and does not necessarily represent an economic value equivalent at the wellhead.

The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this news release.

Contact Information

  • Drake Pacific Enterprises Ltd.
    Neil Orr
    V.P. Operations and Business Development
    Email: norr@drakepacific.com